Four developers submitted bids to build the Kowloon-Canton Railway Corp's Tuen Mun station residential project yesterday after the Lands Department slashed the land premium it is seeking by 28 per cent.

Sun Hung Kai Properties, Henderson Land Development, Cheung Kong (Holdings) and mid-tier developer K Wah International all made offers for the site, whose sale was cancelled last year after receiving only one bid, from Cheung Kong.

'The land premium cut has made the project attractive to developers,' said Alnwick Chan Chi-hing, executive director at Knight Frank Petty. They 'can make a reasonable profit if flat prices reach $3,800 per square foot'.

Sun Hung Kai Real Estate Agency executive director Victor Lui Ting said another attraction was the project's location in the heart of Tuen Mun. It also includes a shopping centre.

'It is the best development site in Tuen Mun,' said K Wah Real Estate property manager Quinly Wan Tsz-mei. 'Prices could be higher than the second-hand flats in the district by 20 per cent after completion.'

Property agents said the prices of flats in the neighbourhood on the resale market range between $2,000 and $3,000 per square foot.

The Lands Department cut the premium it sought for the project to $38.83 billion, or $2,496 per square foot, last month. The rail operator invited 12 developers to submit bids.

The 2.65-hectare site would include seven 32- to 39-storey residential buildings on a podium with retail shops and community facilities, providing 1,924 units with a gross floor area of 1.55 million square feet. The development is scheduled for completion in 2012.